172 Services Marketing
formalize ideas and marketing programmes to execute the determined revised
segmentation strategy. ese three stages form a loop, as the formulation of
marketing strategies, segment targeting and marketing mix programmes is a
never-ending cycle of revisions.
6
BASES FOR MARKET SEGMENTATION
e basic principle of market segmentation is that markets are not homoge-
neous and that it makes commercial sense to di erentiate marketing o erings
for di erent customer groups.
7
Customer needs are becoming increasingly
diverse. ese needs can no longer be satis ed by a mass marketing approach.
Businesses can cope with this diversity by grouping customers with similar
requirements and buying behaviour into segments. Choices a